Debt investors

Kingfisher finances its operations using a number of funding instruments, including bank facilities and leases.

Kingfisher regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash flow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayment or refinancing of debt, and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows and/or impacts to cash inflows. To retain financial flexibility, we aim to maintain strong liquidity headroom (including cash and cash equivalents, and committed debt facilities), which is currently set at a minimum of £800m.

As of 31 January 2024, the Group had £2,116m (FY 22/23: £2,274m) of net debt on its balance sheet including £2,367m (FY 22/23: £2,444m) of total lease liabilities.

The ratio of the Group’s net debt to EBITDA was 1.6 times as of 31 January 2024 (1.6 times as of 31 January 2023). At this level, the Group has financial flexibility whilst retaining an efficient cost of capital. The Group’s maximum net debt to EBITDA is 2.0 times over the medium term.

Net debt to EBITDA is set out below:

 

2023/24

Year end

£m

2022/23

Year end

£m

Retail profit

749

923

Central costs

(60)

(49)

Depreciation and amortisation

641

582

EBITDA

1,330

1,456

Net debt

2,116

2,274

Net debt to EBITDA

1.6

1.6

For any questions or queries please contact:

Bridget Scheuber
Head of Treasury
[email protected]

Maj Nazir
Group Investor Relations Director
[email protected]